KUALA LUMPUR (Sept 29): Ringgit heads for a third quarterly advance, longest winning streak since 2011, as energy prices show signs of recovery.
* USD/MYR falls 1.5% in 3Q to 4.2270; weakens 0.1% Friday
** Support 4.1825, 4.1733, 4.1442; resistance 4.2505, 4.2579, 4.2771
* Brent crude jumps 20% in 3Q; Bloomberg Dollar Spot Index drops 1.9%
* Trading in USD/MYR is likely to remain rangebound, reflecting stalemate between speculators and BNM, which has been a dominant theme this year, says Mingze Wu, a currency trader at INTL FCStone in Singapore
** Sees resistance for pair around 4.250, support at 4.20
* Maybank cautions on risks of a rebound in USD/MYR in near term, with daily momentum having turned mildly bullish while stochastics are rising from oversold conditions, analysts led by Saktiandi Supaat wrote in note Thursday
** Support remains at 4.20 and 4.1720
* 10-year govt bond yield climbed 6bps Thursday to 3.95%
* Domestic Islamic investors such as pension funds were main participants in Thursday’s auction of sovereign Shariah- compliant notes, Winson Phoon, a fixed-income analyst at Maybank Investment Bank, wrote in note Thursday
** Positive bond sentiment seen earlier in the month has waned due to hawkish rhetoric from Fed and rebound in USD
* Data next week include August trade balance and end-Sept. FX reserves